You, your family or someone you know has more than likely been affected by recent news reports about changes in companies and how they’re dealing with pension plans. People are now needing to make big decisions about their company pension plans and many don’t realize they may be eligible for one of the following 3 options:
- Take a monthly pension.
- Transfer their pension to an annuity.
- Take a lump-sum payment from their pension
To find out what they’re eligible for they need to speak with their pension plan administrator and start asking questions.
Before making any major decision about your pension, whether you have access to a company pension or not, you need to know how much you need for your retirement.
Please grab a notepad and answer the following questions:
- Make a list of all your monthly expenses that will continue through retirement?
eg. hydro, food, telephone, internet, transportation
- What expenses will decrease when you stop working and start retirement?
Eg. clothing, transportation, lunch at restaurants
- After retirement, what changes would you like to make to your lifestyle, what experiences are you looking forward to having?
Eg. downsize, renovate or relocate your home, travel, golf
- What would those changes and experiences cost?
- Do you currently have debt?
Eg. mortgage, lines of credit, credit cards
- What are you spending per month to manage each of those debts?
- When your paychecks stop, what sources of money will be coming in?
Eg. government pension, retirement savings, investments, RRSP’s
For a one-sheet summary of things to consider when choosing between a monthly pension or taking a lump sum payout, CLICK HERE
We recommend that you meet with 3 financial professionals that are equipped with the knowledge and tools to provide you with the best guidance to help you choose the best option for you and your family.
Should one of those professionals be me, I would still ask that you meet with at least 2 other people with equal qualifications and experience to mine before you choose who to work with.
To set up a meeting with me, Click Here.
Not sure which financial expert is best suited to answer your questions? Click Here for a compressive breakdown of who does what in our industry.
If you’re all set then you know how important it is to have your retirement secured. If you know someone who will benefit from this information, please forward this information on to them.
If you have any questions or need anything please know my team and I are always here for you.